Vietnam and EFTA Officially Sign Free Trade Agreement After 14 Years of Negotiations

On October 18 in Hanoi, in the presence of General Secretary and State President To Lam, Minister of Industry and Trade Le Manh Hung, together with representatives of member states of the European Free Trade Association (EFTA), officially signed the Vietnam–EFTA Free Trade Agreement (VEFTA). The EFTA representatives included Mr. Guy Parmelin, President of the Swiss Confederation and Head of the Federal Department of Economic Affairs, Education and Research; Ms. Brigitte Haas, Prime Minister and Minister of Finance of Liechtenstein; Ms. Þorgerður Katrín Gunnarsdóttir, Minister for Foreign Affairs of Iceland; and Ms. Astrid Bergmål, State Secretary of the Norwegian Ministry of Foreign Affairs.

The signing of the Agreement marks an important milestone in relations between Vietnam and EFTA, which comprises countries that are global leaders in innovation. It also demonstrates both sides’ determination to strengthen economic cooperation, promote free trade, and reinforce the rules-based trading system amid continued volatility in the global economy.

The Vietnam–EFTA Free Trade Agreement is comprehensive in scope, covering a wide range of important areas, including trade in goods (such as tariffs, technical barriers to trade, sanitary and phytosanitary measures, customs, and trade remedies), trade in services, investment, intellectual property, government procurement, competition, small and medium-sized enterprises (SMEs), dispute settlement, and trade and sustainable development.

With its broad commitments and diverse areas of cooperation, the Agreement is expected to create new opportunities for Vietnam to diversify its export and import markets, enhance business competitiveness, participate more deeply in global value chains, and attract high-quality investment, advanced technologies, and management expertise from leading European economies.

Economic, trade, and investment relations between Vietnam and EFTA member states continue to develop positively, with bilateral trade averaging nearly USD 2 billion annually. The structure of trade between the two sides is highly complementary, reflecting their respective strengths and needs. Vietnam’s main exports to EFTA markets include seafood, footwear, textiles and garments, machinery and equipment, electronics, and electronic components. Meanwhile, Vietnam imports machinery, industrial equipment, chemicals, pharmaceuticals, and production materials from EFTA countries.

Investment cooperation between the two sides has also continued to expand. As of the end of 2025, Switzerland had 234 investment projects in Vietnam, with total registered capital exceeding USD 2.4 billion, while Norway had 62 projects with total registered capital of more than USD 201 million. Many major EFTA corporations and investors have established a presence in Vietnam and are operating effectively in sectors such as industry, food, pharmaceuticals, energy, and technology. EFTA businesses and investors are also exploring cooperation and planning major investment projects in Vietnam in areas including innovation, high technology, logistics, and precision engineering.

The Vietnam–EFTA Free Trade Agreement is expected to open up new opportunities for cooperation and generate fresh momentum for economic growth, innovation, and sustainable development, thereby delivering tangible benefits to the people and business communities of Vietnam and EFTA member states.

Source: congthuong.vn